Robert Gavin Strand has given us an argument that the traditional form of shareholder capitalism is not what it has been cracked up to be. And, that the Nordic countries have invented a much more effective system for both business and capitalism. He shows how the Nordic approach to business creates value for the entire society, including stakeholders and investors in the companies that make up the business sector. In addition, Strand shows how this approach can help us make progress on the challenges of sustainable environments, fairness in employment, and other societal issues. Business in the Nordic countries is seen as an important institution in society, and it is critical in building both individual wealth and the good society. Executives in these countries see their job as not only creating value for investors, but also as contributing to the well-being of all in society through their innovative business models.
Nordic Capitalism is a very important book. Since the near destruction of the world economy during the Global Financial Crisis in 2008, many have argued that the dominant system of business, conceptualized as “the physics of money,” has run its course. There have been many proposals for reform, yet curiously there has been little discussion of how the Nordics have done things in a very different manner. Nordic Capitalism corrects the omission. Strand takes us through the principles that are involved in the Nordic approach, and shows us the effects on individual citizens, companies, and society as a whole. He focuses on the key idea of “cooperative advantage,” which does not deny the reality of competition in business, but realizes that a business can only be successful if it catalyzes the support of its stakeholders, its customers, employees, suppliers, communities, investors, and society. The book is full of examples of how many firms have interpreted this idea and made it the center of their business models.
As we construct a deeper conversation around the world about the variety of systems of business that we need to address the challenges that face us, Strand suggests that the Nordics can be a source of innovation, value creation, and inspiration. We will be repaid many times over for studying the ideas in this original and highly readable book.
Open access